Law Summary
Authorization to Discontinue Railroad Lines
- Explanation: This section authorizes the Manila Railroad Company of the Philippine Islands to discontinue and abandon specific railroad lines.
- Key Definitions:
- "Manila Railroad Company of the Philippine Islands" refers to the corporation operating the railroads in the specified regions.
- Important Provisions:
- The Act specifies four distinct railroad lines that may be discontinued:
- Between Pasig (Rosario) and Montalban, Province of Rizal.
- Between the railroad station at Paco, Manila, and Naic, Province of Cavite.
- Between Batangas and Bauan, Province of Batangas.
- Between Legaspi and Tabaco, Province of Albay.
- The Act specifies four distinct railroad lines that may be discontinued:
- Relevant Timeframes: The Act takes effect upon approval, which occurred on October 20, 1936.
Authority to Dispose of Property
- Explanation: This section grants the Manila Railroad Company the authority to dispose of personal and real property associated with the discontinued railroad lines.
- Key Definitions:
- "Personal and real property" refers to assets owned by the railroad company related to the discontinued lines.
- Important Requirements:
- The disposal of property must be conducted in a manner deemed most advantageous by the directors of the company and the trustee of the mortgage.
- Proceeds from the sale must adhere to the provisions outlined in the mortgage deed for the protection of bondholders.
- Consequences: Failure to comply with the conditions set forth regarding the mortgage may lead to legal ramifications affecting bondholder interests.
Effectivity of the Act
- Explanation: This section states when the Act will become effective.
- Relevant Details:
- The Act is effective immediately upon its approval date, October 20, 1936.
Key Takeaways
- Commonwealth Act No. 59 formally authorizes the Manila Railroad Company to cease operations on specific railroad lines in Rizal, Cavite, Batangas, and Albay.
- The company is empowered to sell associated property under conditions that protect bondholders' interests.
- The Act is effective from October 20, 1936, following its approval.
This summary encapsulates the essential provisions and implications of Commonwealth Act No. 59, providing a clear understanding of the authority granted to the Manila Railroad Company regarding the discontinuation of certain railroad lines and the management of related property.